India Cements (ICMN.NS), now under majority control by market leader UltraTech Cement (ULTC.NS), announced a larger adjusted loss for the first quarter on Friday, citing weak demand as a major factor. The South India-focused company’s loss before exceptional items and taxes grew to 1.62 billion rupees ($19.3 million) in the quarter ending June, up from 989.1 million rupees in the same period last year.
This quarter’s results were somewhat offset by an exceptional income of 2.41 billion rupees from selling a grinding unit. However, excluding this income, India Cements recorded its fifth consecutive quarterly loss amid intense market competition, which has driven companies to reduce prices to maintain their market share.
Market Context
Several factors contributed to the subdued demand for cement in India during this period. The general elections, which took place for half of the April-June quarter, slowed construction activities. Additionally, the extreme summer heat further dampened sales volumes, impacting the industry’s overall performance.
Other major players in the cement industry, including Ramco Cements (TRCE.NS), Shree Cement (SHCM.NS), and ACC (ACC.NS), have also reported quarterly results that fell short of profit estimates, indicating broader challenges across the sector.
The competitive landscape and external factors such as elections and weather conditions have presented significant obstacles for cement manufacturers, reflecting the ongoing volatility and pressure within the market.
